Bill to strengthen SBA’s 7(a) loan program oversight introduced

by NAFCU Newsroom

Bipartisan legislation was introduced yesterday to increase the Small Business Administration’s (SBA) oversight authority over its 7(a) loan program. Credit unions actively participate in the program, which helps credit unions mitigate loan risk and maximize small-business lending within their statutory member business loan (MBL) cap.

Each credit union loan dollar backed by SBA is excluded from the credit union’s MBL cap.

The bill, the Small Business 7(a) Lending Oversight and Reform Act, was introduced by Senate Small Business and Entrepreneurship Committee Chairman Jim Risch, R-Idaho, House Small Business Committee Chairman Steve Chabot, R-Ohio, and respective Ranking Members Jeanne Shaheen, D-N.H., and Nydia Velázquez, D-N.Y.

The proposed legislation would:

 

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